Sign up to receive my Newsletter

The Acorns App – Save Money Without Realizing It

There are tons of great apps out there to help you budget, but one of the easiest ways to do it is with the Acorns app. The Acorns app makes budgeting simple by seamlessly saving your spare change when you make purchases. When you buy a coffee for $3.50, the Acorns app rounds up to $4 and puts that extra 50 cents in your account. When you get to $5, you transfer your funds into an investment portfolio based upon your risk tolerance. Once you setup your account with your bank information, and indicate how aggressive you want to be with your investing, the app does the rest of the job for you!

This app has been getting a lot of buzz in the finance world, with lots of money experts chiming in to give their reviews. Here are some thoughts from some of the industry’s most trusted advisors:

Acorns App Review

Pro:

Acorns app has minimal fees – it only costs $1 a month to use the app if you have less than $5000. With such a low barrier to entry, it’s a great choice if you fit under the $5000 limit.

​Con:

The fee increases to .25% on your overall account balance once you’re over $5000.”While this is lower than the fees for many mutual funds, there are many ETFs that charge investors lower fees,” explained Lanny & Bert at Dividend Diplomats.

Pro:

This app simplified a typically complicated process. “For me, being still very young and having never invested money in the stock market before, this has done exactly what it’s meant to. I’ve become genuinely interested in the market and want to invest as much money as I can, which has hopefully led me to a successful future investing,” wrote Business Insider Australia.

Con:

Though the app is simple, there are not any tax-advantaged retirement accounts. “But until Acorns adds tax-advantaged retirement accounts like IRAs to its lineup, the service isn’t a serious investment solution by itself and should be used in conjunction with those accounts, not instead of them,” explained Arielle O’Shea at Nerdwallet. If you’re a more serious investor, you’d likely be better off working with a broker instead of the Acorns app.

​Overall, if you’re new to investing and want to make it relatively painless, while fueling your curiosity of the stock market, give the Acorns app a try! It’s a great beginners investing tool, and can actually help you make money! The Business Insider Australia writer made $3.40 with a gain of 2.81% in just 30 days, a pretty good rate if he keeps up his saving!